It is likely that the number of people living in London will rise to 10 million within the next 15 years. Given we are in the midst of an affordable housing crisis and that the supply of homes is failing to keep up with soaring demand, something must be done as a matter of urgency. House prices will continue to rise, not least because of the government's bubble-creating Help to Buy scheme, and people are faced with steadily rising rents in the private rented sector, with the housing benefit bill taking the strain. We can't put off building more affordable homes.

Today's report, Raising the capital, by the London finance commission contains some timely and welcome proposals to tackle the crisis. Most importantly for the housing sector, it sets out how the devolution of powers to London could boost genuinely affordable housebuilding while reducing the welfare benefit bill. I welcome the recommendation that the government should look at shifting housing benefit subsidy to capital investment in low-rent homes in London.

Another recommendation – lifting government borrowing limits on the Greater London Authority and local authorities – would enable the mayor and the GLA to raise more money to build many more affordable homes for Londoners. This offers another real way of tackling the acute housing supply crisis, cutting the benefit bill, and boosting economic growth too.

The proposal to let the GLA set business rates in the capital also makes sense. The level could be set in consultation with employers, driving growth and reflecting the needs of businesses in the capital. One of the main things businesses need is to have a stable workforce living in quality homes they can afford, so this would benefit everyone. A report last year showed that housing is one of the main challenges for employers in London, overtaking transport as a major concern for the first time. Employers recognise that adequate homes are part of our vital infrastructure and would welcome a proportion of the £3bn business rate pot being invested in homes and communities in the capital.

There are other things government could do to kick-start housebuilding and seize the economic benefits in London. Central government landholdings could be transferred to the mayor to make sure homes (and planning permissions) are delivered rapidly, for example. Housing associations can deliver more homes too, but confirmation that the current rent increase formula of inflation plus 0.5% will be extended for a 10-year period would also be a positive move, providing certainty for investors.

The commission's report provides a roadmap out of the housing crisis in London. The recommendations will increase the number of affordable homes, reduce the welfare benefit bill, boost growth, create jobs, and benefit employers. We should all back it.